This is a confirmed butternut squash drop; I mapped it out for a more descriptive location. Take a sharp left, once inside the cave. Hope this helps! =)
Also found in a patch in Fireheart Rise, in the Apostate Wastes section (SW corner). They are on the side of a cliff you can't jump to, you must run through the caves found to the West of the patch to get there.
Zone: Far Shiverpeaks
Frostgorge Sound 70-80